December, 24 2007
Jharkhand HC clears SAIL ownership of BSL land
BS reported that Jharkhand High Court has ruled that land measuring 44,000 acres acquired by undivided Bihar state during 1959-1962 for setting up the Bokaro Steel Plant belongs to the Steel Authority of India Limited and that it was liable for paying compensation and other liabilities if required. The court also held that for the acquired land execution of deed of conveyance by the state in favor of SAIL was not required.
A division bench comprising of Justice MY Eqbal and Justice DGR Patnaik in recent judgment ordered that the enhanced compensation awarded by the land acquisition judge, should be paid to the claimants with interest and other benefits. The bench further directed the land acquisition officer to dispose all 10,312 pending cases of the claimants preferably through Lok Adalat and make payment of the compensation out of INR 70 crore deposited by SAIL. The bench held that if any further amount were to be required for making payments, SAIL should pay the same.
The high court also said that “The lands in occupation of the state of Jharkhand for the offices of the state government shall continue to be occupied by it and shall not be asked to be handed over to the Bokaro Steel Plant SAIL.” The court further ruled that SAIL would provide land free of cost to the state government, if the latter would require the same for expansion of its offices.
The high court while delivering the judgment in the case referred to the state government and said “It is crystal clear that the conduct of the authorities of the state, the revenue minister and the revenue secretary is wholly malafide, in as much as, the SAIL for whose purpose the land was acquired, is ready to pay the entire compensation. But the government is adamant on dragging the poor land losers into litigation and thereby deprives the land losers of their due compensation.”
It may be mentioned that the litigation over the rate of compensation of the acquired land for the Bokaro Steel for setting up its plants were pending for the last several years. The land acquisition judge and the land acquisition officer had determined the compensations and prepared several awards. But the land losers could not get compensation till date. Aggrieved by the compensation awarded by the land acquisition officer, the land losers moved applications for reference and the land acquisition judge sometime in 1990 awarded enhanced compensation amount to the land losers.
Swami Agnivesh backs anti POSCO movement
SNS reported that lending total support to the anti POSCO movement, Swami Agnivesh said captive port, swapping of iron ore and the 4,000 acres which is a fertile multi crop area sought by POSCO are just not acceptable.
Swami Agnivesh, a day after visiting several seaside villages in POSCO project area, told reporters here that POSCO should not be allowed to set up its plant at the proposed site as it would destroy a well developed agrarian economy. He said that “POSCO may be allotted any alternative land. One is available in Paradip area within 10 kilometer from the proposed plant site. There is 19,000 acres of barren land which can be utilized for the purpose.”
he remarked that “These are non negotiable and in fact the state government is violating principles laid down by the Supreme Court, Planning Commission and even the UPA chairperson Mrs Sonia Gandhi.”
Referring to Mr Naveen Patnaik’s claims that project work will commence on April 1st 2008, Swami Agnivesh leader said nothing should move till the people of Dhinkia are taken into confidence. He said “Do not create another Kalinga Nagar, Kashipur or for that matter Nandigram.”
Swami Agnivesh said that he will meet both the PM and FM to share his views on the proposed project. He added that even if it were an Indian company such fertile land where people grow cash crops should not be given for industrial activity.
CIL to close 17 loss making mines of BCCL
Ranchi Express reported that union coal ministry and the Coal India Limited have decided to wind up some 17 loss making mines before going ahead on the revised revival plan for the Bharat Coking Coal Limited.
As per report, the loss making 17 mines will be closed in phased manner and the winding up of the units should be finally over by the year 2012.
The revised revival plan has been submitted to the Board of Reconstruction of the Public Sector Enterprises with a request to bail out the loss making company from the list of sick units across India.
The Coal Ministry has also directed the BCCL management to step up coal production measures from the current fiscal so as to arrest the rising graph of losses at the earliest.
India’s cement demand may fall short by 8.5% in 2008
BS reported that the cement capacity in India will be 182 million tonnes by March 2008, 8.5% short of the target set by the working group on cement industry for the 11th Year Plan.
Nine months after promising to put up additional capacities of 27 million tonnes, cement companies have added a mere 11.50 million tonnes till date. While the Cement Manufacturers' Association said that the industry has so far added 6.35 million tonnes, the figure does not include the capacity expansion of 2 companies namely ACC and Binani Cement. ACC added 1.4 million tonnes at its two plants and Binani added 4.1 million tonnes recently.
Market experts said that the industry may add another 3.5 million tonnes in the next 3 months, taking the total tally to 15 million tonnes. They added that the delay in projects was mainly on account of supply constraints on the plant and machinery front and environment clearances from the government.
Mr HM Bangur president of Cement Manufacturer’s Association and MD of Shree Cement said that "We will not be able to meet the target as project delays are taking place. There will be at least one quarter’s delay."
Mr AK Saraogi CFO of JK Cement said that "As most of the projects are Greenfield ventures, unlike the earlier expansions which were through modernizations, de bottlenecking and Brownfield projects, the time being taken for operationalization is more. Additional land requirement and delay in delivery of equipment are adding to the problems."
Market players said that the gestation period for the newer plants had increased by around 6 to 8 months. They added that normally it should have been 20 to 22 months, but now it was reaching 26 to 28 months.
NTPC gets USD 380 million loan from JBIC for Barh project
It is reported that National Thermal Power Corporation has signed a USD 380 million loan agreements with Japan Bank for International Co operation to part finance its 1,980 MW Barh super thermal power project in Bihar. Mr AK Singhal director finance of NTPC has signed the agreement on December 20th 2007 at Tokyo.
An official of NTPC said that “NTPC concluded a USD 380 million loan facilities under the JBIC guarantee to part finance the 1,980 MW Barh super thermal power project stage I in Bihar.” He added that the facility, which was arranged and guaranteed by JBIC, has floating interest rate linked to the LIBOR and door-to-door maturity of 18 years. This is the first facility extended by the JBIC to NTPC without sovereign guarantee.
JBIC has previously provided financing for Gandhar, Simhadri, Faridabad and North Karanpura power projects for an aggregate amount of JPY 172 billion through its overseas development assistance program.
Upcoming power plants to get coal supply on tapering basis
BS reported that central government has approved the allocation of coal on tapering basis to power companies who have been allocated coal blocks for their power plants but mining of the blocks is yet to start. As per report, the policy has been backed by the Planning Commission and was recently approved by the energy coordination committee headed by the prime minister. The new policy has been implemented with effect from December 4th 2007.
Usually it takes about 48 months to build a power plant, but the development of a mine takes about 7 years. In such a scenario, the power plant needs coal supply to fire the plant and produce power. Therefore, the standing linkage committee would consider the tapering linkages issue.
The procedures for granting tapering linkages would be similar to the procedure being followed for grant of normal linkages, which includes submitting the application form with prescribed processing fees. This would follow by reports from ministries concerned and companies, quite similar to the normal procedure for the linkage followed by the coal ministry.
Tapering linkages usually would get terminated with the opening of the mines. Normally, the validity period for tapering linkages would not be extended. However, in some rare cases it could be reconsidered, according to the guidelines.
CSE releases report on mining and its effect in Orissa
It is reported that Mr MC Bhandare governor of Orissa has released Centre for Science and Environment’s report “Rich Lands Poor People: Is sustainable mining possible?”, which explodes several myths associated with mining linked development.
Centre for Science and Environment has released startling facts on how it had led to decline in employment and how there was a disturbing overlap of forest, water, mineral resources and growth of Naxals in areas which are the poorest in terms of the human development index.
As per the report, between 2002 to 2007 about 875 square kilometer area has been leased out for mining, 600 square kilometer opened up for prospecting and 560 mines obtained environmental clearances. Forest clearances have been four times more than the previous decade and on an average 3,800 hectares for forest land diverted every year. Orissa has the dubious distinction of clearing maximum amount of forest land for mining in India. It showed how there was a four fold increase in mineral value and a 30% reduction in jobs. In Orissa it showed a three fold increase and a 20% drop in employment.
The report shows that the growth in mining activity resulting in displacement and negligible benefits following back to people of the area had paved way for Naxals to make inroads. Added to this was the fact that mineral resources are either in forest areas or close to forests providing cover for such activities. Out of the 50 top mineral producing districts in the country, 34 falls under the most backward districts category. In Keonjhar, the most mined district of Orissa, 62% of the population lives below the poverty line and in Koraput, the bauxite capital of the country 79% live below poverty line.
CSE report further added that the income from mineral extraction rarely benefits the regions from where they are mined and in fact poverty increases due to displacement and loss of livelihood. Orissa’s water resources are as stressed contrary to the belief that it is water surplus. The states hilly terrains with their natural springs are being destroyed by mining contend. It added that Orissa’s 6 million tribal populations have borne the brunt of these environmental impacts.
AP CM reviews Brahmani steel plant works
Express News Service reported that Mr YS Rajasekhara Reddy chief minister of Andhra Pradesh visited the sites of Brahmani Steels and reviewed the project works with officials and the factory management and went round the photo exhibition on its progress.
He has asked the management of Brahmani Steels to furnish the details pertaining to the progress of steel factory to the media periodically.
Mr G Janardhan Reddy CMD of Brahmani Steels has clarified that they did not approach any bank for loan and there was no dearth of funds to execute the project. He said “We are using the revenue generated by Obulapuram Mines and investing INR 1,050 crore in the project.”
Answering a query on provision of employment to the local youth, Mr Janardhan said that priority would be given to engineering graduates and diploma holders in recruitment. He promised to provide employment to 165 families of Chintala Thanda in Jammalamadugu mandal.
MRTPC finds Indian cement majors guilty in 1990 cartelization case
ET reported that India’s fair trade watchdog The Monopolies and Restrictive Trade Practices Commission last week held 42 Indian guilty of cartelization under the aegis of Cement Manufacturers’ Association pertains to a scrutiny period of six months from February 1990.
Passing a cease and desist order, a 3 member MRTPC bench comprising Justice OP Dwivedi, Justice MMK Sardana and Justice DC Gupta directed the companies not to indulge in any such arrangement directly or through Cement Manufacturers’ Association.
It said that “In the present case, we have found direct as well as indirect evidence of concert. The existence of a common platform in the form of CMA, which frequently reviews the price situation, is a strong pointer towards existence of a cartel. Admittedly, CMA has been fixing prices during the control regime. The same apparatus continues even now without any change. In this scenario, the simultaneous and frequent rise in prices by the respondents, although within a narrow band, would clearly indicate that the respondents acted in a concert.”
As per report, senior advocate Mr OP Dua and his associate Ms Babita, who represented the commission’s investigation wing, relied on comprehensive data on price trends, capacity utilization and dispatches maintained by the development commissioner and the cost auditing branch of the ministry of corporate affairs. Mr Dua told ET “The association’s admission in its annual report about price fixing too helped the regulator to establish guilt. If the industry does not listen, the commission can take contempt proceedings against individual companies.”
Mr HM Bangur president of Cement Manufacturers’ Association told ET that “We respect the verdict and we will abide by it.”
Boeing signs 10 year pact with HAL
It is reported that Boeing has signed a 10 year agreement with India’s state run Hindustan Aeronautics Ltd for aerospace manufacturing in India worth more than USD 1 billion.
Mr Jim Albaugh president and CEO of Boeing’s Integrated Defense Systems said that “Under the agreement, Boeing and HAL will explore business opportunities aimed at transferring work packages to India with an initial value of USD 10 to USD 20 million annually.”
He added that “Boeing would also support Hindustan Aeronautics Ltd in developing manufacturing processes and capabilities needed for the production of hardware for Boeing and or its subcontractors.”
Rajathi Group inks 50:50 JV with Merlin for realty sector in TN
It is reported that real estate developer Merlin Group has formed a 50:50 JV called Rajathi Merlin Projects Private Limited with Chennai based export company Rajathi Group with an investment of INR 1,000 crore. The new JV will commence operations in the realty sector in Tamil Nadu over the next 2 to 3 years.
Rajathi Merlin combines the real estate experience and expertise of the Merlin Group with Rajathi Group's sound knowledge of the Tamil Nadu market. It plans to develop land banks located at East Tambaram, Sriperambudur, Ocheri, including other large scale development of infrastructure projects. It has acquired 40 acres of land at Sriperambudur and initiated to procure 300 acres at Ocheri, which are proposed to large-scale integrated township development. It also has plans to develop properties in Coimbatore, Madurai and Trichy market.
DVC awards Raghunathpur EPC contract to Reliance Energy
It is reported that Reliance Energy has bagged an EPC contract worth INR 3,725 crore from Damodar Valley Corporation for the 1200 MW Greenfield Raghunathpur thermal power project in Purulia district of West Bengal.
The fast track order is to be commissioned in 38 months. With this order, REL has now won the EPC mandate for 3,000 MW of coal fired power projects including the 600 MW Yamunanagar project and the 1,200 MW Hissar project in Haryana.
For the 11th Plan period ending March 2012, DVC has targeted to add 4,700 MW through 5 projects namely Durgapur with 1,000 MW, Koderma with 1,000 MW, Mejia-II with 1,000 MW, Bokaro-A 500 MW and Raghunathpur with 1,200 MW. Of these, the main plant packages for the first 3 have been placed on BHEL. With the Raghunathpur project now awarded and tenders for the Bokaro-A project due to be opened on January 17th 2008, DVC hopes to fully award its entire 11th Plan addition program before March 2008. The Bokaro-A project involves setting up of a 500 MW coal fired unit in Jharkhand, replacing the archaic Bokaro-A plant of 135 MW capacity lying non operational since around 2000.
Apart from these 5 projects, DVC is also planning to add 1,500 MW of new thermal power capacity before March 2012, in separate JV with TATA Power and Steel Authority of India Limited.
ADB to lend USD 500 million to PPP projects
Asian Development Bank will provide India with up to USD 500 million in loans designed to promote public private partnerships in order to ramp up investments in infrastructure. The funds will be provided to centrally owned India Infrastructure Finance Co Limited in multiple tranches over the next 4 years. It is estimated that the money will help catalyze private sector investments in infrastructure of up to USD 3.5 billion.
The government has been the main provider of infrastructure in India. However, public financing alone will not be able to meet the estimated USD 475 billion needed between now and 2012 for roads, railways, seaports, airports, power transmission lines and other infrastructure.
Mr Cheolsu Kim principal financial sector specialist at ADB said that ADB fears that the serious lack of infrastructure could cost India 3 to 4% in terms of gross domestic product every year. He added that "India needs to double its current level of investment in infrastructure and to increase and mainstream public private partnerships."
Poland not to privatize its mines before 2015 – Report
It is reported that Indian steel majors, who were eyeing Polish coal mines are out of luck as Poland will not privatize its mines before 2015.
Mr Krzysztof Majka ambassador of Poland said that “Poland could be India’s gateway to the European Union. We are interested in collaboration in food processing. However, though iron and steel companies, including ArcelorMittal, are interested in coal deposits, the government will not release the mines before 2015.”
MEPS sees revival in SS output in 2008
UK based MEPS reported that after a solid start, stainless steel production collapsed during the latter part of 2007. The catalyst was a significant drop in the LME nickel price.
MEPS said that “We estimate this year's global output at 27.5 million tonnes 2.5% down on the figure in the previous twelve months. Substantial cuts have been made to output in the past two quarters. No region escaped the sword as mill order books collapsed.”
MEPS added that “At the halfway stage, crude steel output was 1.33 million tonnes up on the figure in the same period in 2006. We estimate that a, year on year, decrease of 2.1 million tonnes took place in the last six months.”
MEPS said that “This year, we have witnessed some dramatic decreases in production by the steelmakers. EU supply in the third quarter of 2007 declined by over 30% on the same period in 2006. Greater percentage cuts took place in the US and South Korea. The Japanese weighed in with a 20% reduction and even the Chinese joined in the action. Production curbs continued into the final trimester.”
MEPS added that “We believe the inventory depletion phase will come to an end in the first quarter of 2008. Mill delivery lead times are starting to extend from the extremely short offers being made just a few months ago. Customers are now expected to reorder more in line with real requirements. Steel producers should then be in a position to increase plant utilization.”
MEPS further added that “We forecast global stainless steel output rising to 29 million tonnes in 2008. This equates to an increase of more than 5 percent over the anticipated outturn in 2007 and 3.5 percent above the previous record production in 2006.”
EU to postpone AD case for silicon manganese
YIEH reported that last weekend European Commission has decided to impost the anti dumping tax on silicon manganese products from China and Kazakhstan. However due to tight supply of these products in EU, EC postponed it for 21 months.
Since June, 2006, EC started to investigate the import of silicon manganese from China, Kazakhstan and Ukraine. The antidumping duty rate is 8.2% from China, 6.5% for Kazakhstan and 0 from Ukraine.
According to some statistics, China exported silicon manganese to EU which accounted for 10% in total exports and the main countries are Belgium, Italy and Spain.
Baffinland to supply iron ore to Salzgitter
Baffinland Iron Mines Corporation announced the signing of a letter of intent for the future sale of up to 1 million tonnes per year of iron ore to Salzgitter Flachstahl GmbH. This represents the second letter of intent signed with an end user steel company.
Under the Letter of Intent, Salzgitter would purchase up to one million tonnes of lump iron ore per year over a fifteen-year period, to start in 2014. The Letter of Intent is an expression of interest only, and any binding contract of purchase and sale will be subject to, among other things, a production decision by Baffinland, and the future negotiation and consummation of a final sales contract with Salzgitter.
Baffinland's Mary River Project is focused on the European market for the sales of its lump and fine iron ore. The Company has currently targeted 16 million tonnes to be placed within the European market on an annual basis. This level of European market penetration would represent some 90% of Baffinland's intended initial output of 18 million tonnes per annum.
Mr Michael Zurowski executive vice president of Baffinland said that
"Salzgitter is the second steel company to sign a letter of intent with Baffinland. It is very important for us, as Salzgitter has historically been a significant consumer of lump and has consistently used almost 40% lump within its blast furnace burden mix. Salzgitter's strong support of the project will be an important statement about the quality of the Mary River ores and further validates the Project.”
Albidon finalizes funding for Zambian nickel project
Metals Insider reported that Australian junior Albidon has now raised sufficient funding to bring its Munali nickel project in Zambia into production. First production remains on schedule for Q2 2008. At full production the mine will produce around 8,500 tonne per year of nickel in concentrates.
The funding comes in two parts. A total USD 25 million have been raised via a share placement. China’s Jinchuan, which already owns a stake in Albidon and is the off-take partner for the mine’s concentrates, has subscribed for shares valued at USD 15 million. The balance USD 10 million were placed with ZCCM-IH, an investment holding company owned 87.6% by the Zambian government. Its interests up to now have largely been in the copper sector in Zambia.
Barclays will also provide a further USD 20 million in senior debt funding for the project.
ArcelorMittal to raise seamless tube price in US market
US ArcelorMittal Shelby Tubular has announced to increase its prices by USD 100 per short ton for seamless tube products, which will be effective with new orders after January 14th 2008 and all shipments after March 1st 2008.
According to a letter they sent to their customers, the rise in price is in order to cover higher raw materials, freight and energy costs.
Tenova to EAF supply cooling system to Georgsmarienhütte
Tenova LOI Italimpianti’s Düsseldorf based Techint Italimpiant Deutschland GmbH announced that it has recently received the purchase order from Georgsmarienhütte GmbH for the engineering, manufacturing, assembly and commissioning of a new evaporative cooling system for the waste gas duct of the EAF in the customer’s main plant, Georgsmarienhütte. The complete plant will be commissioned in January 2009 after a production stop of only eight days during which the necessary installation and plant redesign will be carried out.
The EAF with a production output of 140 tonne per hour produces ca. 100,000 meter cube per hour of waste gas with a peak temperature of 1800 °C and an average waste gas heat of 25 MWH. The new cooling system for the waste gas duct was planned as a state of the art evaporative cooling system and will use the waste heat energy for steam production. 12 tonnes saturated steam with 20.5 bar and 216 °C will be produced hourly. The steam will be used for vacuum steel degassing where up till now primary energy has been used.
The order involves the turn key delivery of the first, heavily burdened elements of the waste gas duct, the cooling system for the complete waste gas duct and all peripheral components for steam production. The new system will be implemented in a separate building, which has been specially adapted for this purpose. Another important aspect beyond the drastically improved operating efficiency is the simplified maintenance and the possibility of repairs during ongoing production. Due to the discontinuous mode of the furnace and the continuous steam demand of the steel degassing additional steam accumulators will be used as buffers.
Leeco Steel to open North Carolina facility
Leeco Steel LLC a leading distributor of steel plate announced that it will build a plate distribution and processing center at Hertford County in North Carolina. The facility, expected to be opened in late 2008, will serve many plate consuming industries throughout the Southeast and East Coast. Strategically located, the 100,000 square-foot plant will offer significant benefits for Leeco customers.
The Leeco Hertford County facility will emphasize plate distribution and processing services to industries such as bridge, barge, ship and wind tower. It will be designed to allow customers to take advantage of truck, rail and barge shipping. It will be Leeco’s fifth plate distribution facility in North America.
Mr Bob Pepoff Leeco Steel CEO and President said that “The Hertford County plant will provide geographic proximity to our customers and processing that is not currently available in our other facilities. This expansion positions Leeco to become a major competitor not only in the southeastern United States, but everywhere east of the Mississippi River.”
Leeco Steel is a leading distributor of carbon, high strength low alloy, and heat treated alloy plate with locations in Chicago; Oshkosh, Wisconsin; Ambridge, Panama and San Nicolas de los Garza, Mexico.
EU regulators to probe in STX Shipbuilding buy in Aker
AFP reported that EU antitrust regulators have opened an in depth probe into South Korean group STX Shipbuilding’s purchase of a controlling minority interest in Norwegian ship maker Aker Yards.
The South Korean STX Shipbuilding’s bought the 39% stake in Aker Yards in October 2007 for USD 800 million, acquiring an interest just below a 40% threshold that requires a full takeover to be launched.
The European Commission set itself a May 15th deadline to rule on whether the deal should be allowed or not in order to determine whether the transaction would stifle competition.
The Commission said the market for building cruise ships was currently controlled by three companies, including Aker Yards. However, it had evidence that STX was preparing to enter the cruise ship market and therefore voiced concern that the deal would prevent the emergence of a new competitor.
Aker, the world's fifth biggest shipbuilder has about 20,000 employees and 18 shipyards in Norway, Finland, Germany, France, Romania, Ukraine, Brazil and Vietnam.
UK Coal poised to reject Meinl approach
Financial Times reported that Britain's biggest coal supplier UK Coal is understood to be planning to dismiss an informal approach from Meinl, an Austrian investor to buy the company's coal and power generation units.
UK Coal received a letter last week from the board of Meinl saying it was interested in purchasing the company's operations, excluding its property interests, and proposed a meeting with management or its advisers in early 2008, but Meinl did not indicate what it might be prepared to pay.
UK Coal is understood to see its independent prospects as better than they have been for several years as it is decreasing its proportion of coal-supply contracts that are based on historical, and therefore below current market value, prices.
The revelation that its property assets might be worth more than previously thought has boosted its appeal to investors. Its share price has more than doubled over the past two years. The value of the company’s land rose by 36% to GBP 398 million in the first half of 2007. It continues to benefit from rising coal prices and closures of unprofitable mines. It has also recently won the right to operate for another 10 years its Thoresby coal site.
Meinl has planned European energy acquisitions since June 2006. While registered in Jersey, it is listed on the Vienna stock exchange and has about BP 400 million in assets under management.
CMC reports solid Q1 results
Commercial Metals Company announced first quarter net earnings of USD 69.2 million on net sales of USD 2.1 billion for the quarter ended November 30th 2007 as compared with net earnings of USD 85.4 million on net sales of USD 1.9 billion in first quarter 2006.
CMC in a statement said that the largest swing in earnings for the quarter was at our International Mills. With lower profitability at our Polish mill and start up costs in Croatia, adjusting operating profit fell from USD 25.9 million in last year's first quarter to a slight loss this quarter.
It added that the current year quarter included a pre tax LIFO income of USD 4.3 million compared with a LIFO expense of USD 10.1 million in the prior year quarter. The effective tax rate was 34.0%, lower than the first quarter of last year due to state income taxes, but higher than the fourth quarter of last year as earnings from our European mills were lower.
Selling, general and administrative expenses in the first quarter included USD 10.3 million of costs associated with the investment in the global deployment of SAP software. The amount in the prior year's quarter was USD 751 thousand. Other costs of USD 16.7 million were capitalized during the quarter. We have expensed USD 45.3 million and capitalized USD 50.2 million for the project to date.
Alstom wins Italian TGV order
Le Figaro newspaper reported that French transport and power generator group Alstom has won an order to supply 25 TGV high speed trains, with an option for 10 more, from a private Italian consortium.
Alstom was not available for comment but the Mr Philippe Mellier president of its transport activities told Reuters in an interview in October he expected a decision on the Italian deal before the end of the year.
The paper said the Nuovo Trasporto Viaggiatori venture had awarded the order of EUR 625 to EUR 875 million to Alstom, for its planned high speed train services between Rome and Naples by 2009 and Milan, Rome and Naples by 2010.
NTV is a venture created by Fiat chairman Mr Luca Cordero de Montezemolo and Diego Della Valle of the Tod's shoe firm.
Heidtman Steel products to expand facility in Butler
Platts reported that The Indiana Economic Development Corp offered Heidtman Steel Products up to USD 400,000 in performance based tax credits and up to USD 43,500 in training grants based upon the company’s announced expansion and job creation plans.
Heidtman Steel Products, Inc one of the nation’s largest privately held steel processors and marketers, recently announced it will expand its steel processing operations at Butler in Indiana creating 18 new jobs. The company, which specializes in processing and marketing flat rolled carbon steel, will invest USD 13.5 million to build and equip a 120,000 square foot addition to its manufacturing operations, making room for a new multi stamping, blanking and steel slitting operation.
Located adjacent to global steel giant Steel Dynamics, Heidtman Steel employs 203 people in Butler. The company, which operates two additional facilities in Indiana, will begin hiring machine operators and materials handlers in 2008 as part of its expansion in Butler.
Mr Scott Carter GM of operations for Heidtman Steel said that "The demand for our steel products continues to grow. This expansion allows us to upgrade our technology and meet the needs of the market."
Heidtman Steel processes nearly 5 million tonnes of steel annually through its Heidtman facilities or through joint ventures. The companies more than 1,200 customers include clients in industries ranging from the automotive and trailer markets to manufacturers of metal buildings and appliances.
Perilya warns of slightly lower Q4 zinc production
Metals Insider reported that Australian zinc lead producer Perilya zinc production in the current quarter from its Broken Hill mine in New South Wales would drop slightly due to changes in the mining sequence caused by localized seismic events in the southern part of the mine.
The report added that “Although there has been no material impact on the mine workings, recent gains in development stocks have been negated requiring the mining of lower grade material.”
Production in the first half of the company’s financial year is now expected to be 41,000 tonnes to 43,000 tonnes of contained zinc and 25,000 tonnes to 27,000 tonnes of contained lead. Production in Q3 07 was 23,000 tonnes of contained zinc and 13,300 tonnes of contained lead.
However, production over the full calendar year is expected to rise to 95,000 tonnes to 105,000 tonnes of contained zinc from 92,000 tonnes in the previous financial year. It added that at a forecast 55,000 tonnes to 60,000 tonnes of contained metal, lead production will be in line with the 60,000t produced in the last financial year.
Transnet Coal Shipments to Richards Bay Are Improving
Transnet Ltd said that rail deliveries to Richards Bay Coal Terminal, the world's biggest export facility for the fuel, have improved significantly after maintenance last week cut shipments by half.
Mr Sandile Simelane a spokesman of Johannesburg based Transnet Freight Rail said that “Deliveries have improved significantly this week.” He added that repair work had cut weekly shipments to 200,000 tonnes on December 15th 2007.
Mr Zama Luthuli a spokesman for the terminal “Two so called tipplers, used for unloading the coal, are coming back into service.” He added that from the east coast town. The facility, which has capacity to export 72 million tonnes of the fuel a year, shipped 5.58 million tonnes in November, while 5.34 million tonnes arrived at the port by rail. The terminal is owned by South Africa's biggest coal exporters, including Anglo American Plc, BHP Billiton Ltd. and Xstrata Plc.
But Mr Simelane declined to say that how much coal Transnet expects to deliver to the terminal this week and Zama wouldn't say how much the terminal expects to receive.
Coal for shipment from Richards Bay advanced AUD 2.50 or 2.7% to AUD 93.75 a metric tonne for the week ended December 14. The price has almost doubled this year and reached a record AUD 100.25 in the week that ended November 30.
Brazil Paranapanema IPO delayed
It is reported that Brazil’s Paranapanema group has asked the country’s financial regulator CVM for additional time to carry out a public offering of shares.
According to Business News Americas, the group’s original notification to the regulator had specified that the offering would take place before 18 December. The additional time was requested due to the current conditions of capital markets in Brazil and abroad that created the need to modify the previously planned timetable.
Paranapanema has four branches: Mineração Taboca (tin), Cibrafértil (fertilizers), Caraíba Metais (copper and byproducts) and Eluma (copper tubes and fixtures). The company’s mine output of tin has risen to 5,014 tonnes in the nine months to September 2007, up by 36% YoY. The completion of a delayed expansion of its Pitinga mine will give output a further boost in 2008.
Salzgitter to supply pipes for Taweelah-Fujairah gas pipeline
It is reported that Dolphin Energy has awarded Salzgitter Mannesmann International an order of more than USD 200 million to manufacture and supply the pipes for its new Taweelah to Fujairah gas pipeline.
Dolphin Energy said that Salzgitter will manufacture the pipes at the Europipe steel mill in Germany. It said that "Around 120,000 tonnes of X70 48 inch coated line pipe will be supplied. First deliveries are expected in the summer of 2008, with delivery completion in spring 2009.”
Mr Ebrahim Ahmad Al Ansari UAE GM of Dolphin Energy said "We undertook a fast track procurement process, and we have been able to achieve a very competitive price and delivery schedule in difficult market conditions."
Taweelah to Fujairah gas pipeline will link Dolphin Energy's gas receiving facilities at Taweelah on the coast of Abu Dhabi with the Adwea power and water desalination plant at Qidfa in Fujairah. The pipeline will be laid over an environmentally approved cross country route, through more than 240 kilometers of desert and mountainside. The bids for the design and construction of the pipe line are due by January 31, 2008. Dolphin Energy has invited nine contracting companies.
Dolphin Energy was created to develop substantial energy projects throughout the GCC. Dolphin Energy is 51% owned by Abu Dhabi's Mubadala Development Company and Total of France and Occidental Petroleum of the US own 24.5% each. Its major strategic initiative, the Dolphin Project, involves the production and processing of natural gas from Qatar's North Field and transportation of the dry gas by sub sea export pipeline from Qatar to the UAE, which began last July.
Steel nails manufacturer Dubai Wire FZE faces dumping charges in United States
Emirates Business reported that Dubai Wire FZE based at a Jebel Ali is facing charges in the United States for dumping nails at less than fair value. Dubai Wire FZE exports 90% its total production to the USD 1.2 billion a year to US market. Its US distributors include Continental Materials Inc, Itochu Building Products Company and Black & Decker.
Mr Rupak Ved president & CEO of Dubai Wire said that "We have been exporting steel nails to the US for 20 years now. We used to export USD 100 million worth of nails per year to the US market."
Mr Ved added that "We have discussed the issue with the UAE Ministry of National Economy. The US market for nails is already down due to the housing industry problem created by sub-prime crisis. Now we operate at 50% capacity and efforts are on to find alternative markets in Europe.”
As per report, Dubai Wire FZE manufacturer of steel nails and its US clients are the subject of a joint complaint filed with the US International Trade Commission by leading American nail manufacturers. From May 29th 2007 US ITC has been conducting an inquiry into the alleged dumping of UAE nails in the US market. The investigation covers Dubai Wire FZE and a group of 24 Chinese producers and exporters who are accused in the case. An interim investigation report by US ITC in August 2007 alleged that certain nail manufacturers from the UAE and China have threatened the US nail industry by dumping these steel products at less than fair value.
DCCI calls for monitoring of imported construction materials
Khaleej Times reported that Dubai Chamber of Commerce and Industry has called for continuous monitoring and need for an advanced organization to ensure product quality of construction materials such as steel, cement and wood etc.
Dubai Chamber of Commerce and Industry said that “These points will help perk up the industry's general business environment for further growth.”
However it pointed out that those prices will increase as the sector continues to import raw materials.
As per report, the construction sector, which accounted respectively for 13% and 12% of Dubai's gross domestic product and the UAE's GDP last year, will grow significantly with over DAED 367.5 billion (USD 100 billion) in investment by 2010. Its contribution to Dubai's GDP of AED 167.3 billion was AED 21.5 billion.
Corus Aluminum to market Eurocon’s Alubond aluminum panels in Europe
Khaleej Times reported that Eurocon Building Industries has signed a deal worth USD 200 million with Corus Aluminum for the distribution of Alubond aluminum composite panels in Western Europe.
Under the deal, Corus Aluminum will purchase the Eurocon Alubond products worth up to USD 800 million during the next 3 years besides setting up a new production facility in Europe. Under the deal, Corus will stock and distribute Alubond in Italy, France, Germany, Suisse, Spain, Belgium, Greece, Luxembourg, Holland and United Kingdom through its network of stock centers and distribution channels.
The deal will also help Eurocent Industries to double its production capacity and become the world's largest aluminum composite panel manufacturer.
Mr Shaji Ul Mulk chairman of Eurocon Group said that the deal gives us an opportunity to penetrate in the West European market. He added that "Alubond has already emerged as the top brand in East Europe and now we are very optimistic of reaching a similar position in West Europe as well."
Mr Mulk said that “This association with Corus Group has encouraged us to double our production capacity in UAE and set up a new production facility in Europe. Alubond's production facility in Belgrade is at an advanced stage and expected to commence production in a few months. Alubond will also be launching an exclusive line of products for European market called Alubond lite in 3mm thickness for usage in the signage and corporate identity market."
Mr Mulk said that ABTI and Eurocon is at an advanced stage of expansion in their new 400,000 square feet manufacturing and office facility located in Sharjah Hamriyah Free Zone which is due for completion in March 2008. He added that "This facility will include increasing the factory production capacity in UAE to more than 3 million square meters. The company is also in discussions with Dupont for manufacturing fire rated mineral core at the UAE facility."
UAE’s water & electricity sector to get AED 35 billion investments
Khaleej Times reported that the water and electricity sector in the UAE is set to attract AED 35 billion worth of investments over the next 5 years, prompting India's Elecrama to attract power generating companies.
Citing a survey done by Emirates Bank International, Elecrama said that Dubai has the greatest demand for electricity in the UAE which is growing at 14% per annum while Abu Dhabi's is expected to double over the 6 year period between 2008 and 2013. It added that the UAE capacity for electricity would increase by 60% to 26,000 MW in 4 years while its electricity demand would grow at an average annual rate of 10% until 2010.
Elecrama has proposed a GCC wide network of electricity, which would mean billions of dollars in savings due to production sharing, as member states would have an identical form of electricity. It said "The grid will also enable energy exchange programs between the GCC states and will play a major role in increasing productivity, diversifying economies and upgrade of systems."
Elecrama said that an exhibition in India, whose demand for electricity, electronic and related products is likewise skyrocketing due to high population growth and massive development projects, presents lucrative business opportunities for GCC power firms. It added that "Given this trend it is significant to note that many UAE companies have already confirmed participation at this year's event."
Indian exports to the UAE involving the electrical and electronics industry have reached AED 430.4 million since last year, contributing a bulk of the electricity demand by Gulf Cooperation Council member states that is triple the global average.
Iran ready to help Vietnam in oil, gas sectors
Mehr News Agency reported that Iran is ready to have cooperation with Vietnam in oil and gas fields.
Mr Mehdi Safari deputy foreign minister for Asia Pacific affairs in Vietnam has voiced Iran’s preparedness to help build refineries and oil installations and carry out joint oil and gas projects in Vietnam and a third country.
Mr Tran Ngoc Canh general director of Vietnam’s Oil & Gas Group, while referring to Iran’s significant position in oil and gas industries, said that an oil delegation will be dispatched to Tehran in January 2008 for more talks over the issue. He called for Iran’s participation in construction of the third refinery in southern Vietnam and other exploration, derivation and development projects.
UAE's oil output declines by 18% in November - OPEC
Gulf News reported that a report issued by OPEC showed that the UAE's crude oil output fell by more than 18% in November 2007 mainly due to maintenance being conducted on some offshore fields.
According to the report, the UAE pumped an average of 2.12 million barrels per day of crude oil in November 2007, making it the 7th largest OPEC producer. Offshore field maintenance in Abu Dhabi, which produces more than 90% of the UAE's oil reduced production in November 2007 by as much as 481,000 million barrels per day. The fields that were particularly affected were Umm Shaif, Upper Zakum and part of Lower Zakum.
Nakheel to take 6.51% stake in Mirvac Group
Dubai based real estate firm Nakheel has announced that it agreed to buy 6.51% of Australian real estate company Mirvac Group Limited as part of plans to expand abroad. But it did not say how much it paid for the stake, which was worth about AUD 400 million at the closing price of Mirvac's shares.
Mr Chris O'Donnell CEO of Nakheel said that "We believe there are many potential opportunities for Mirvac and Nakheel to work together. As Nakheel looks to move forward its international mandate, it makes perfect sense to look at the possibility of joint developments with a like minded company." He added that Nakheel had not held talks with Mirvac.
Mirvac is developing residential properties in Australia and manages hotels in Australia, New Zealand and on Pacific islands. Nakheel, which is working on USD 60 billion in projects, is one of the agencies the government of Dubai is using transform the Gulf Arab emirate into a business hub and tourist destination.
Iran to allot additional IRR 5 trillion for water sector
Mehr News Agency reported that Mr Mahmud Ahmadinejad President of Iran has ordered for allocation of IRR 5 trillion more to the water sector’s 2008 budget.
Underlining the necessity of investment in the water sector and completion of projects next year, Mr Ahmadinejad gave priority to construction of irrigation network and drainage of lower parts of dams.
Mr Parviz Fattah Iran’s minister of energy said that an appropriation of IRR 32 trillion has been made for water and power next year.
BHP bid for Rio - China puts embassies on alert
The Telegraph reported that China has begun concerted action to protect its position as one of the world's leading consumers of iron ore and other raw materials to stop the merger of global mining giants BHP Billiton and Rio Tinto. The political and market led interventions that China is considering include submissions to the UK and Australian competition authorities, a Chinese backed white knight bid for Rio and a government backed stake being acquired in Rio to block BHP's proposal.
As per report, Chinese embassies in the UK and Australia have sounded out banking and legal advisers in London and Sydney over the past 10 days and their officials are drawing up detailed analysis of the BHP-Rio situation to assess all of China's political options.
The report added that 3 Chinese companies Chinalco, Baosteel and China Development Bank, which already owns a 1% stake in Rio Tinto have taken the lead in examining ways of using the markets to scupper BHP's approach for Rio. These include talks with a wider circle of Chinese state owned metals businesses.
The report quoted some banking sources as saying that the Chinese are also thought to have approached Vale to join their group.
In addition, Chinese have approached Lehman Brothers, the investment bank and are scouring the globe for other advisers in their efforts to affect the outcome of BHP's unsolicited takeover bid for Rio although no formal confirmation of Lehman's involvement has yet been made.
Chinese steel exports to dip in 2008 – CISA
After the announcement by Chinese government of further tightening of steel exports starting from January 1st 2007, China Iron & Steel Association has predicted that Chinese steel exports are likely to fall by 20 million tonnes in 2008.
Mr said Luo Bingsheng deputy chairman of the China Iron & Steel Association said "Expanding exports is not the industry's development objective. We should insist on satisfying the domestic market and carry out government policy this year to further check steel exports.”
China exported close to 58 million tonnes of steel in January to November 2007 period up 55% YoY and Mr Luo anticipates total exports of crude steel in 2007 to be around 72 million tonnes, accounting for 14.8% of the whole year's output of 490 million tonnes. Mr Luo said. "The export figures are on the high side."
However Mr Luo said the authorities are looking into introducing a steel export tariff next year, but there's no clear timetable.
Sino Steel snaps Up 67% stake in Zimasco
It was recently reported that Sinosteel Corporation has acquired 67% stake in Zimbabwe's leading ferrochrome producer and exporter Zimasco Holdings for an undisclosed amount thus becoming the majority shareholder.
The report cited a Zimasco Holdings spokesperson as saying that "The transaction closed on December 13th 2007 and Sinosteel has become the controlling shareholder of Zimasco Consolidated Enterprises.”
The Zimasco spokesperson added that Sinosteel would market the output through the appropriate channels, with due regard to existing contractual obligations, the present customer base and the need to maximize company profitability.
Under the deal, Sinosteel will retain the current Zimasco staff and the existing management in both the company's mines and the smelting plant.
Zimasco Consolidated Enterprises is the parent company of Zimasco Holdings. Zimasco Holdings is the fifth largest high carbonated ferrochrome producer in the world. It used to produce 210 000 tonnes of high carbon ferrochrome per year, nearly all of it along the mineral rich Great Dyke, accounting for 4% of global ferrochrome production. Zimasco has the world's second largest reserves of chrome, after South Africa.
Sinosteel has 76 subsidiaries under its umbrella, 53 of them in China and 23 dotted around the world. Its core business is developing, processing, trading and logistics of metallurgical mineral resources and related engineering technical services and equipment manufacture.
It was formerly owned by Union Carbide Corporation, now part of Dow Chemicals Corp.
Shougang’s new CR mill started production
It is reported that Beijing based Shougang Corporation successfully produced the first coil on its new pickling line & tandem cold rolling mill on November 8th 2007.
The width of the strips from this line is between 800mm and 1,900 mm in thickness range of 1.6mm to 6 mm. The annual production will be around 1.8 million tonnes with strip widths up to 1,870 mm and final strip gages between 0.2mm and 2.5 mm. Shougang plans to produce the very latest steel grades, such as deep drawing qualities for the automotive industry and multiphase steels from this mill.
The facility was supplied and commissioned by SMS Demag and their supply scope included the tension leveler, the ASC side trimmer with scrap chopper, the latest generation of turbulence tank pickling technology with a pickling process model and the five stand tandem cold mill in CVC plus®, six-high technology (with ESS mode and AIO design), provision for later installation of an Edge Drop Compensation system as well as a carrousel reel and all necessary ancillary equipment. Furthermore, SMS Demag is supplying a modern strip inspection line, tailor made for the particular requirements of continuous quality assurance for automotive sheets. The maximum pickling rate is 230 meter per minute and the maximum rolling speed is 1,400 meter per minute.
China raises interest rates for sixth time this year
It is reported that China’s central bank raised its benchmark interest rates for the sixth time this year, in a bid to prevent the economy from overheating and curb rising prices.
The People's Bank of China increased the one year benchmark deposit rate by 27 basis points to 4.14% while raising the one year lending rate by 18 basis points to 7.47%, effective from December 21st 2007.
The People's Bank of China in a statement on its website said “This move is conducive to preventing the rapidly expanding economy from overheating and structural price rises from evolving into entrenched inflation.”
Mr Guo Tianyong, economist with the Central University of Finance and Economics said" The gap in the increases shows that authorities would like to rein in the lending enthusiasm of banks. Raising the lending rate by a smaller margin is in line with what the central policymakers want."
Chinese banks are estimated to make a total of CNY3.6 trillion ($490 billion) in new loans, about CNY420 billion ($56.9 billion) more than last year. Analysts said the move will encourage people to keep cash in the bank rather than making it readily available for stock and property investments.
Dezhou Jigang processing plant starts production
It is reported that Lu Northwest's largest steel processing and distribution project Dezhou Jigang Longma has formally put into production on December 18th 2007.
The total investment of this project is CNY 145 million. After the completion, it can process and distribute 400,000 tonnes steel and realize sales income to reach CNY 1.6 billion to CNY 2 billion.
Dezhou Jigang Longma is established by Jinan iron and steel group and Dezhou Longma Jinjian group. It is an integrated company for steel sales, processing, distribution and services.
Tianjin and Rizhao ports to raise unloading charges by 10%
Tianjin Port Group Co and Rizhao Port, aiming to boost revenue and gross margins, said that they would charge higher fees for unloading containers in 2008.
Tianjin Port, which currently charges an average of CNY 251 per TEU for unloading, will raise its fees by 10%. Rizhao also plans to lift its fees by 10%.
Shanghai International Port Group Co also said in October 2007 that it would charge 10% more for unloading containers, which would increase revenue by CNY 900 million in 2008.
Baogang transferors state ownership of Rare Earth Enterprise
It is reported that Baogang group and Rare Earth Hi Tech has signed a contract in Inner Mongolia Property Rights Trading Center and transferred the state ownership of Rare Earth Enterprises, which was financed by Baogang Group. The net assets of this transferred stated ownership reached to CNY 268 million.
According to the relevant provisions of state ownership transfer on enterprises, Baogang group entrusted Inner Mongolia Property Rights Trading Center with the publicly transfer of state ownership of Rare Earth Enterprises. After 20 workdays of opening its business, at last Rare Earth Hi-Tech bought the state ownership of Rare Earth Enterprises.
The transfer was an important step for Baogang group to realize the strategy of optimization of steel, highlighting RE, integrate the Inner Rare Earth Enterprises and finally realize the leap forward development.
Hangsteel achieves volume production of LW216 pedrail plate
It is reported that Hangsteel middle rolling mill has achieved volume production of LW216 pedrail plate through repeated debugging and improving, average production reached 70 tonnes per hour and every performance accords with user’s requirements.
LW216 pedrail plate mainly is used in large scale bulldozer, with high technology content and great difficulty in production. A at present, there are a few enterprises in china that can realize volume production. LW216 pedrail plate is a very important new product in Hangsteel middle rolling mill.
In recent years, the middle rolling plant implemented different development stratagem, accelerating the development of new products and product structure optimization and have successfully developed LT203, L190, LW216 pedrail plate products, aroused extensive attention at home and abroad. From January to November 2007, this plant have produced a total of 3,500 tonnes various pedrail plate, creates good economic benefits for the enterprise.
Novosibirsk to double production of water and gas pipes
FIS reported that assembling of a new pipe electric welding mill called 10 - 50 at the Novosibirsk Metallurgical Plant is underway by Italy's o Mills.
The new pipe mill will make electric welded pipes of the diameter of 19 mm to 48 mm with the wall width of 1 mm to 3.5 mm. The mill's capacity is 60,000 to 70,000 tonnes per annum. The mill is to be put into operation in May 2008.
As per report the mill is equipped with modern automated band setting devices, the welding machine from Ideal WERK of Germany, automatic packaging line from MAIR of Italy and other state of the art equipment.
Mr Putin might become Gazprom chief
It is reported that Mr Vladimir Putin president of Russian may head Gazprom, the world's largest natural gas producer, after he leaves the Kremlin next year.
Mr Dmitry Medvedev deputy prime minister of Russia who is likely to become the next Russian president in 2008, is currently in charge of Gazprom, which controls the largest proven gas reserves in the world.
When Medvedev vacates the Gazprom office, Putin is the most probable successor, an unidentified official close to Medvedev and two unnamed sources linked to the company said.
The unnamed official said that "Officials and experts are trying to forecast who will fill the empty seat. Mr Vladimir Putin is a popular candidate."
A certain technical candidate will first head Gazprom and then Mr Putin will take over the company, other sources maintained.
Chelyabinsk Zinc profit falls
It is reported that Russian zinc major Chelyabinsk Zinc Plant’s profit during January to September declined by 13% YoY.
Its net income fell to USD 69 million from USD 79 million in the same period last year although sales advanced by 18% to USD 450 million.
Chelyabinsk Zinc Plant is the producer of almost 60% of the Russia’s total zinc production.
Zlatoust production up by 5.3% YoY in 11 months
Interfax reported that the Zlatoust Metallurgical Plant, a unit of the Estar steel group, has increased crude steel production by 5.3% YoY to 571,388 tonnes in the first 11 months of 2007. A spokesman for Estar told Interfax that the plant increased roll production by 4.7% to 403,164 tonnes.
ZMZ produced an average monthly 51,000 tonnes of crude steel and 36,000 tonnes of roll. It produced 52,780 tonnes steel and 36,672 tonnes roll in November.
ZMZ, which produces a range of more than 1,000 steels for the defense, chemicals and aviation industries, was set up in December 2003 with the assets of the Zlatoust Metallurgical Combine as its core.
The Estar group includes the ZMZ, Rostov Electrometallurgical Plant, Guriyevsk Steel Works, Novosibirsk Steel Works, Nytva Steel Works, and Volgograd Small-diameter Pipe Plant, Engels Pipe Mill, Volga FEST, Stalnoi Profil, Estar Trading House and LomProm scrap merchant.
Ukrainian metal consumption in November up by 28% YoY
The Ukrainian Association of Metal Traders' press service told Ukrinform that Ukraine has increased use of metal roll in January to November by 27.8% YoY to 8,726,698 tonnes.
The Association also said that pipe plants also increased purchases of metal roll by 7.3% YoY.
Russia China oil pipeline faces delay
Russian state owned company Transneft said that it may delay the launch of a multi billion dollar oil pipeline to China till September 2009.
Interfax quoted a Russian government source as saying that Transneft submitted a proposal to the Energy Ministry to put off the launch of the pipeline until next year. The source added that "There is a certain construction technology: if they don't manage to commission the oil pipeline by September 2008, the next possible term is September 2009, no later.”
Transneft, which runs Russia's oil pipeline system, was scheduled to commission the first 600,000 barrel per day section of the USD 11 billion pipeline by the end of 2008.
However, the company said in November that the construction of the first phase of the pipeline and the pumping stations had not been completed on due time, as expected.
Chinese enterprises rush into Russian mining business
Asia Pulse reported that recent years saw strengthening of cooperation between Chinese and Russian companies on resources exploration and mining in the Far East Area.
According to information from Chita State of Russia, China's Shandong Luneng group is building the Berezovskoye iron ore mining project with annual output capacity of 10 million tonnes and would supply iron ore to China after it goes into operation in 2008.
The Berezovskoye iron ore field has iron ore reserve of 400 million tonnes and is just about 20 kilometer away from the Sino Russian border port, with 70% iron ore suitable for open cut mining.
It is learned that China Nonferrous Metal Industry's Foreign Engineering and Construction Co Ltd is also cooperating with Chita State on mineral exploration and mining.
Earlier, Russia's Jewish Autonomous Region also announced that one Chinese company registered locally had obtained a 20 year mining license for manganese mine with annual output of 20,000 tonnes, in order to supply materials to a metallurgical company in northeast China's Heilongjiang Province.
Russian iron ore reserve concentrates at East Siberia area with over 4 billion tonnes of reserve.
RZD plans to create 15 subsidiaries
It is reported that RZD has decided to set up 15 subsidiaries and JV in the research sphere, trade, workers' servicing, capital repair of wagons during 2007.
From April 2007 the Railway Terminal Management was removed from the Federal Passenger Management to provide operation of 323 terminals appraised to worth RUB 34 billion.
In June 2007 the First Cargo Company was set up to provide control over 200ths freight wagons.
The carriages repair divisions were removed from the whole structure.
In line with the target market model RZD will be a single carrier till the end of the third stage of the restructuring by 2010. Besides, the reasonability of the carriages removal from the infrastructure will be considered.
